Major Pairs

Major pairs are the most heavily traded currency pairs in the forex market. These currency pairs represent the relationship between the US dollar (USD) and another major currency. Approximately 80% of the currency pairs traded in the market are considered major pairs.

The most common major pairs include:

1. EUR/USD (Euro/US Dollar): This is the most liquid currency pair in the world. It represents the relationship between the Eurozone and the United States. The economic conditions of the Eurozone and economic data from the United States are key factors that influence the price of this pair.

2. USD/JPY (US Dollar/Japanese Yen): This pair represents the relationship between the US dollar and the Japanese yen. Factors such as economic data from Japan, interest rates, and risk appetite can impact the price movements of this pair.

3. GBP/USD (British Pound/US Dollar): This pair represents the relationship between the British pound and the US dollar. Economic data from the UK, the Brexit process, and the economic situation in the United States are factors that influence the price of this pair.

4. USD/CHF (US Dollar/Swiss Franc): This pair represents the relationship between the US dollar and the Swiss franc. Switzerland’s status as a safe haven and the economic conditions in the United States can influence the price movements of this pair.

Major pairs provide high liquidity, allowing traders to execute trades with low spreads. Additionally, these currency pairs tend to have more stable price movements and provide ample data for technical analysis. As a result, forex traders and speculators often prefer to trade major pairs. However, it’s important to note that each currency pair has its own characteristics and the factors that influence their prices may vary. Therefore, conducting careful analysis is crucial.